Capesize freight rates came under pressure, amid limited trading activities and market uncertainty over the Russia-Ukraine conflict.
The Capesize 5 time charter average, then fell by $1,595 day-on-day to $16,589 on Friday, after a sluggish session.
The Baltic Dry Index (BDI) also fell by $57 day-on-day, or down 2.54% day-on-day, to $2,187, due to softening freight rates.
Capesize draws support from Pacific amid miliary conflict in Ukraine
Freight rates crumbled further on the advent of Russia invasion of Ukraine, sparking fears of widening of the conflicts and implementation of tough sanction against the belligerent.
However, the market still found some support from the Pacific market with healthy cargo list, with high demand to move iron ore despite recent dips in prices.
In the meantime, the Atlantic market faced a long ballast list that lowered freight rates, though some of vessels were being diverted to West Africa to move bauxites.
Bunker prices surge further on strong crude
The bunker prices rose due to Russia’s military conflict with Ukraine, as the price of VLSFO climbed by $17/mt to $769/mt in the port of Singapore.
Bunker price rally followed the surging crude oil prices which broke the $100 per barrel mark as Russia invaded Ukraine this week.
Some market analysts like Rystad Energy even stated that Brent crude price might hike higher to $130 pe barrel, as the conflict dragged on and stringent sanctions being placed on Russian oil and gas exports.
Meanwhile, the US tried to calm the crude price hike, by citing it might work with other countries to release more strategic crude reserves to stabilize prices.